Anil Agarwal: Not to buy Cairn Energy’s stake in India arm as of now

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Vedanta Resources on Thursday said it does not intend to acquire Cairn Energy’s over 10 per cent stake in Cairn India immediately, but will look at it sometime in the future.

“We have no talks but in future we will look at it. We are open for that but we are not talking at the moment,” Vedanta chairman Anil Agarwal told reporters here after delivering a lecture in Shri Ram College of Commerce.

The London-listed mining conglomerate had acquired a majority stake of 58.5 per cent stake in Cairn India for $8.67 billion in December 2011. The deal was delayed by about 16 months from the original announcement of August 2010.

Vedanta currently holds 58.76 per cent stake in Cairn India through subsidiary firms Sesa Goa and Twin Star Mauritius Holdings, while Cairn Energy has 10.27 per cent stake.

Talking about Cairn India’s plans, Agarwal said it will spend $3 billion on its expansion, particularly increasing the capacity of Barmer oil block in Rajasthan.

He also said that the government needs to simplify the processes of taking regulatory approvals to increase country’s crude oil production.

“We believe in this government, we believe in India and there is no question on that but things, small hitches... I hope they simplify the processes... Rs 7,000 crore has been imposed on us. You have to pay cess and royalty. Never ever India has banned the contractual agreement,” he said.

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